Reliance Jio Infocomm, India’s leading 4G operator, announced its new post-paid plan to arrest the declining ARPU.
Reliance Jio is offering 25 GB data, free voice calls, unlimited SMS, pre-activated ISD and international roaming without security deposit – for Rs 199 per month.
Nearly 5 percent of India’s 1 billion plus mobile phone users are on post-paid plans. Post-paid plan users do not make frequent shifts to other operators as compared with pre-paid customers.
JioPostpaid brings a differentiated connected living experience to post-paid mobile users and will challenge the industry status-quo by offering the lowest tariffs in India and abroad to the post-paid users, Reliance Jio said.
Jio has also announced cost effective international calling and international roaming tariffs for its customers.
The below chart indicates that the Reliance Jio post-paid plan is more cost effective as compared with Airtel, Vodafone and Idea Cellular.
Airtel, Idea and Vodafone are offering 20 GB of data for Rs 399, in addition to free voice and SMS. All these operators also charge an additional Rs 149 per month for international roaming.
Jio said post-paid consumers can check their bill in real-time and also get it in inbox at the end of the month.
The company, which launched its 4G services in September 2016, is facing slow growth in ARPU because of its cost effective data plans to pre-paid customers. The Mukesh Ambani promoted Reliance Jio is offering free voice and SMS to all on its 4G network. This means that Reliance Jio needs to rely on data plans for its revenue.
The Rs 199 post-paid plan will ensure that the company’s data price will become Rs 8 per 1GB because the company is offering free voice and SMS to all. Jio is urging India’s one billion plus mobile phone users to shift to its network using MNP.
Jio made an attempt to reshape the post-paid phone industry at a time when most telecos are neglecting the cash generating business.